Audit Report on the Purchasing and IT Inventory Practices of the New York City Office of the Actuary

Audit Findings and Conclusion

The objectives of this audit were to determine whether NYCOA maintained adequate financial controls over its OTPS purchasing practices as required by NYC Comptroller’s Directives, NYCOA’s policies and procedures, PPB Rules and other applicable policies and procedures, and whether it maintained adequate controls over its IT inventory.

The audit found weaknesses in New York City Office of the Actuary’s (NYCOA) controls over its purchasing, which included the lack of formal written policy and procedures establishing consistent practices. Specifically, NYCOA was unable to provide documentation showing prior approvals for P-Card purchases totaling $1,631 and for purchase orders totaling $15,437. Finally, NYCOA did not maintain complete IT inventory records as required by Citywide Inventory Management Policy.
To address these issues, the audit recommends that NYCOA require that staff obtain written approvals from supervisors prior to purchase, as required by DCAS’ Citywide Purchasing Card Policies and Guidelines; institute regular monthly reviews of P-Card usage and ensure all purchases are fully supported by appropriate documentation; finalize the agency’s written policy and procedures for all types of purchases; maintain complete, accurate, and updated records of IT inventory, and ensure that all IT inventory has proper identification tags; and develop procedures for conducting annual inventory in the event of future disruptions and ensure annual inventory counts are undertaken in the future, in accordance with DCAS’ Citywide Inventory Management Policy.

Agency Response

In its response, NYCOA generally agreed with the audit’s findings and agreed to implement its recommendations. NYCOA also noted that “all these reported irregularities occurred during the unprecedented pandemic of COVID-19, when employees were grappling with many work and life issues, and that the OA did not experience any loss of business continuity during this period.”